Link_A_Media Devices

Santa Clara, Calif.Founders: Dr. Hemant Thapar, Dr. Alfred Yeung, and Reza NorouzianVC Investment over the last four quarters: $22 million

Founded in 2004, this 88-person company develops and manufactures custom chips for peripheral data storage devices. As a result of the recession, Link_A_Media expects slower demand of some of its customer products but says that customers who want inexpensive, higher-storage capabilities will be interested in its technology, which will position the company well when the economy stabilizes. As a result, its engineering activities have increased and the company is hiring. The company projects revenues of $30 million in 2009 and $100 million in 2010.

Key to startup success: "As a startup, do not fantasize about getting business unless you are able to help customers ... [and] convey sincere empathy [when] solving customer problems."